But the fall of the dollar should not be measured in other currencies, instead it should be measured in gold. And gold will soon start an exponential rise measured in paper money.”

Greyerz added: “Looking at gold demand from India and China, it continues unabated. Premiums in the Indian market reached $100 per ounce last week. This is an indication of a massive shortage of supply. Meanwhile, the UK has exported well over 1,000 tons of gold to Switzerland in just the first eight months of this year. This was against only 85 tons last year.

This is yet more proof of the demand for gold being so much greater than the production, as Eric Sprott recently explained in his letter to the World Gold Council. But the reason for this massive increase in gold going from the UK, which produces virtually no gold, to Switzerland, is the fact that the Swiss refiners could not get enough supply from the mining companies — so they had to buy from the bullion banks.

One of my contacts with one of the largest European precious metals brokers told me this morning that they could not find any silver. All the refiners they contacted could not take their orders and could not give any delay. “Call us next next month”, they said. This is the first time that such an event has occurred.

On Wednesday, he attempted to source a ton of silver (32,000 oz), from the three main Swiss refiners. Two of them refused to take the order entirely, and the third refiner stated delivery would take 2 weeks.

The refiners claimed they had been very busy during the last month trying to fulfill an “enormous” Chinese order.

Physical demand for gold is not a US-centric factor — it’s a global factor and it’s increasing exponentially. Eastern central banks and the sovereigns, they are now buyers of very, very large size. China is openly dumping dollars for anything tangible, including gold and silver.

Now, in bringing this information to the public, what I’m doing is exposing the imminent blowup of the entire LBMA unallocated bullion banking system in its entirety. He’s just a small pawn in this, but I suspect my recent work showing China competing for this traditional bullion banking business is bringing this LBMA default even closer.